Shares of the country's leading private sector life insurance company, HDFC Life Insurance Company, rose as much as 7.8 per cent to hit record high of Rs 775.65 a day ahead of its board meeting to consider preferential allotment of shares. Surge in HDFC Life share price came on the back of heavy trading volumes as 12.59 lakh shares changed hands on the BSE compared with an average of 1.41 lakh shares traded daily in the past two weeks, according to data from the BSE.
HDFC Life's board will meet tomorrow, September 3, to consider issue of equity shares or other securities of the company by way of preferential allotment.
"We wish to inform you that a meeting of the Board of Directors of HDFC Life Insurance Company Limited (the "Company") is proposed to be held on Friday, September 3, 2021 to consider issue of equity shares and / or other securities of the Company by way of preferential allotment, subject to such approvals as may be required under applicable law, and to consider convening of a meeting of the shareholders' of the Company to obtain approval for such issue, if required," HDFC Life said in a stock exchange filing.
HDFC Life shares have so far this year surged 15 per cent compared with a gain of 21 per cent in the Sensex.
As of 2:29 pm, HDFC Life was the top gainer in the Nifty 50 basket of shares. The stock was up 5.43 per cent at Rs 758.60 on the BSE, outperforming the Sensex which was up nearly 1 per cent.